Nvidia earnings slam into market with no patience for AI hiccups

"While most Wall Street pros are anticipating strong results from the chipmaker amid ballooning spending on computing infrastructure, there is less certainty about how its shares and others will respond at a time when fears about AI disruption and the staying power of heavy investments are dominating the tape."

"Even if they have tremendous numbers, we know the markets are really fickle, said Ken Mahoney, president of Mahoney Asset Management. After powering the market higher for much of the past few years, Nvidia shares have gone cold in recent months, rising just 3.8% since the start of the fourth quarter."

"Nvidia's revenue is expected to jump 68% to $65.9 billion in its fiscal fourth quarter, which ended on Jan. 31. Adjusted earnings are anticipated to rise 72% to $1.53 a share, according to the average of analyst estimates compiled by Bloomberg."

Nvidia's earnings announcement occurs during a critical period for the stock market as investor confidence in artificial intelligence investments wavers. While Wall Street analysts expect strong results from the chipmaker, with revenue projected to jump 68% to $65.9 billion and adjusted earnings rising 72% to $1.53 per share, market sentiment remains uncertain. Nvidia shares have risen only 3.8% since the fourth quarter began as investors question the massive spending by companies like Alphabet and Microsoft on AI infrastructure. Simultaneously, sectors perceived as vulnerable to AI disruption have experienced significant declines, with companies like Intuit, Gartner, and Workday down over 40% year-to-date. Despite these concerns, Nvidia maintains its position as the world's most valuable company with approximately $4.8 trillion in market capitalization, exerting substantial influence over the S&P 500 Index.

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